RE:RE:RE:RE:The effect of rate hikes...monty613 wrote: bandit69 wrote:
You clearly do not understand interest rates and the bond markets or even how money works (or, more specifically, the cost of money). I tried to explain things as clearly as possible here but obvious willful blindness affects readers here.
you have been adamant that the company will need to raise equity because of their inability to service their debt. that is absolutely ridiculius when you look at WELL's DSC.
I work in the corporate lending and money markets business as a day job. I understand how the cost of money works.
Wrong. I never said they would not be able to service their debt but nice try. Maybe learn to read too. I said debt servicing costs would rise with variable rate debt.
And yes, I do believe they will need to raise cash eventually. Will it be a raise or under the mask of another stellar acquisition....I have no idea.
I've come across many in the world of markets that didn't fully understand the full ramifications of the cost of money (The Fed and bond markets), the how's or the why's. You should know the most basics then such as I've mentioned before if I can get X from a virtually risk free treasury then whoever is borrowing will need to offer me XX+ to take on the risk of lending to them. That's just one aspect with the cost of money. As I've already mentoned before, other factors are also affected in an increasing rate environment (business or personal....) not just debt servicing costs. If you're in that business then you should know this.
Are you a lender to WELL?